Marketing

Domino's will pay customers to tip their delivery drivers

The pizza delivery chain will give customers $3 coupons for their next delivery order if they tip their drivers $3 or more.
Domino's
Domino's will give $3 coupons for delivery orders to customers who tip drivers at least $3. | Image courtesy of Domino's.

Domino’s really wants you to tip your driver.

The Ann Arbor, Michigan-based pizza delivery chain on Thursday said it would give out coupons to customers if they tip their drivers. Customers have to tip at least $3 to get the $3 coupon for their next online delivery order.

The program, called “You Tip, We Tip,” is the latest in a string of innovative deals designed to encourage return visits to the chain. The company last year gave out free pizzas to customers who made digital orders, a promotion that successfully generated sales and traffic.

Before that, it would provide “carryout tips” to customers who picked up their own orders. In each case, as in this one, the coupons can only be redeemed on customers’ next visits.

This time, the promotion is targeted at delivery customers.

Pizza chains have struggled to generate delivery sales for a variety of reasons, including a shortage of drivers and competition from third-party services. And many customers have shifted to carryout, which is cheaper.

Domino’s is also using the promotion to target customer frustration with the growing tip culture. More types of restaurant chains are asking customers to tip, which is coming on top of rising menu prices.

“Domino’s drivers have been hustling to deliver hot, delicious pizzas since 1960, and we love that customers have been tipping them for their great service since day one,” Kate Trumbull, Domino’s chief brand officer, said in a statement. “But these days, everywhere you go, there’s a tip screen. The pressure to tip is real, even when no extra service is provided. So, we decided to flip the script and show our appreciation by tipping customers back.”

Pizza chains have seen weak sales coming out of the pandemic, as lower-income consumers frustrated by inflation have turned to grocery options like frozen pizza, while higher earning customers pay up to use third-party services.

That has led many chains, including Domino’s and Papa Johns, to intensify their marketing efforts to bolster sales.

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